Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2019 | Jan. 31, 2020 | |
Document And Entity Information [Abstract] | ||
Document Fiscal Period Focus | Q1 | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Entity Registrant Name | MUELLER WATER PRODUCTS, INC. | |
Entity Central Index Key | 0001350593 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 158,035,863 | |
Entity Small Business | false | |
Trading Symbol | MWA | |
Title of 12(b) Security | $0.01 par value common stock |
Cover Page Document
Cover Page Document - shares | 3 Months Ended | |
Dec. 31, 2019 | Jan. 31, 2020 | |
Cover Page [Abstract] | ||
Entity Incorporation, State or Country Code | DE | |
Document Type | 10-Q | |
Document Type | true | |
Document Period End Date | Dec. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-32892 | |
Entity Registrant Name | MUELLER WATER PRODUCTS, INC. | |
Entity Tax Identification Number | 20-3547095 | |
Entity Address, Address Line One | 1200 Abernathy Road N.E | |
Entity Address, Address Line Two | Suite 1200 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30328 | |
City Area Code | (770) | |
Local Phone Number | 206-4200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 158,035,863 | |
Trading Symbol | MWA | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Assets: | ||
Cash and cash equivalents | $ 136.8 | $ 176.7 |
Receivables, net | 132.1 | 172.8 |
Inventories | 212.9 | 191.4 |
Other current assets | 25.7 | 26 |
Total current assets | 507.5 | 566.9 |
Property, plant and equipment, net | 224.5 | 217.1 |
Goodwill | 97.5 | 95.7 |
Identifiable intangible assets | 428 | 433.7 |
Other noncurrent assets | 51.5 | 23.9 |
Total assets | 1,309 | 1,337.3 |
Liabilities and stockholders' equity: | ||
Current portion of long-term debt | 0.9 | 0.9 |
Accounts payable | 58.6 | 84.6 |
Accrued Liabilities, Current | 63.9 | 93 |
Total current liabilities | 123.4 | 178.5 |
Long-term debt | 445.5 | 445.4 |
Deferred income taxes | 89.5 | 87.9 |
Other noncurrent liabilities | 55.6 | 33.2 |
Total liabilities | 714 | 745 |
Common Stock | 1.6 | 1.6 |
Additional paid-in capital | 1,401.3 | 1,410.7 |
Accumulated deficit | (775.9) | (786.2) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (32) | (36) |
Total stockholders' equity | 595 | 590.1 |
Noncontrolling interest | 0 | 2.2 |
Total equity | 595 | 592.3 |
Total liabilities and stockholders' equity | $ 1,309 | $ 1,337.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2016 | Mar. 31, 2015 |
Statement of Financial Position [Abstract] | ||||
Series A common stock, shares authorized | 600,000,000 | 600,000,000 | ||
Series A common stock, shares outstanding | 157,889,045 | 157,462,140 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | $ 212.6 | $ 192.8 |
Cost of sales | 140 | 132.7 |
Gross profit | 72.6 | 60.1 |
Operating expenses: | ||
Selling, general and administrative | 49.9 | 41 |
Restructuring | 2.4 | 3.2 |
Total operating expenses | 52.3 | 44.2 |
Operating income | 20.3 | 15.9 |
Non-operating expense: | ||
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost | (0.7) | (0.1) |
Interest expense, net | 7.4 | 5.5 |
Walter accrual | 0.2 | 37.4 |
Total non-operating expenses | 6.9 | 42.8 |
Income (loss) before income taxes | 13.4 | (26.9) |
Income tax expense (benefit) | 3.1 | (5.9) |
Net Income (Loss) Attributable to Parent | $ 10.3 | $ (21) |
Net loss per basic share: | ||
Earnings Per Share, Basic | $ 0.07 | $ (0.13) |
Net loss per diluted share: | ||
Earnings Per Share, Diluted | $ 0.06 | $ (0.13) |
Weighted average shares outstanding: | ||
Basic, in shares | 157.7 | 157.7 |
Diluted, in shares | 158.7 | 158.8 |
Dividends declared per share, in dollars per share | $ 0.0525 | $ 0.0500 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net Income (Loss) Attributable to Parent | $ 10.3 | $ (21) |
Other comprehensive income (loss): | ||
Minimum pension liability | 0.7 | 0.5 |
Income tax effects | (0.2) | (0.1) |
Foreign currency translation | 3.5 | (1.2) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 4 | (0.8) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 14.3 | $ (21.8) |
Consolidated Statement Of Stock
Consolidated Statement Of Stockholders' Equity - USD ($) $ in Millions | Total | Common stock | Accumulated deficit | Accumulated other comprehensive income (loss) | Noncontrolling Interest [Member] | Additional Paid-in Capital [Member] |
Other Comprehensive Income (Loss), Net of Tax | $ (0.8) | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.0500 | |||||
Balance at Sep. 30, 2018 | $ 1.6 | $ (850) | (32.8) | $ 1.5 | $ 1,444.5 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared | 7.9 | |||||
Stock-based compensation | 1.7 | |||||
Shares retained for employee taxes | 1.2 | |||||
Stock issued under stock compensation plans | $ 0 | 3.1 | ||||
Net Income (Loss) Attributable to Parent | (21) | |||||
Net Income (Loss) Attributable to Noncontrolling Interest | (0.2) | |||||
Balance at Dec. 31, 2018 | 538.9 | 1.6 | (871) | (33.6) | 1.7 | 1,440.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Payments to Acquire Interest in Joint Venture | 0 | |||||
Adjustments to Additional Paid in Capital, Other | 0 | |||||
Payments to Noncontrolling Interests | 0 | |||||
Acquisition of remaining JV interest | 0 | |||||
Common Stock, Value, Issued | 1.6 | |||||
Other Comprehensive Income (Loss), Net of Tax | $ 4 | 4 | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.0525 | |||||
Balance at Sep. 30, 2019 | $ 592.3 | 1.6 | (786.2) | (36) | 2.2 | 1,410.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared | 8.3 | |||||
Stock-based compensation | 1.3 | |||||
Shares retained for employee taxes | 0.7 | |||||
Stock issued under stock compensation plans | 0 | 1.4 | ||||
Net Income (Loss) Attributable to Parent | 10.3 | |||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | |||||
Balance at Dec. 31, 2019 | 595 | $ 1.6 | $ (775.9) | $ (32) | $ 0 | 1,401.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Payments to Acquire Interest in Joint Venture | (2.2) | |||||
Adjustments to Additional Paid in Capital, Other | $ (3.2) | |||||
Payments to Noncontrolling Interests | 5.2 | |||||
Acquisition of remaining JV interest | (2.2) | |||||
Common Stock, Value, Issued | $ 1.6 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Income (Loss) Attributable to Parent | $ 10.3 | $ (21) |
Adjustments to reconcile net income (loss) to income (loss) from continuing operations: | ||
Depreciation | 7 | 6.1 |
Amortization | 7 | 6 |
Stock-based compensation expense | 1.3 | 1.7 |
Retirement plans | 0.7 | 0.3 |
Deferred income taxes | 1 | (2.2) |
Other Noncash Income (Expense) | 0.4 | (1.2) |
Changes in assets and liabilities, net of acquisitions: | ||
Receivables | 41 | 57.7 |
Inventories | (21) | (21.9) |
Other current assets and other noncurrent assets | 3.6 | (3.5) |
Accounts payable | (26) | (32) |
Walter Energy Accrual | (22) | 37.4 |
Other current liabilities | (12.8) | (12.2) |
Long-term liabilities | (2.1) | (7.7) |
Net Cash Provided by (Used in) Operating Activities, Total | (12.4) | 9.9 |
Investing activities: | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (123) |
Capital expenditures | (15.2) | (15.9) |
Proceeds from sales of assets | 0.1 | 0 |
Net Cash Provided by (Used in) Investing Activities, Total | (15.1) | (138.9) |
Financing activities: | ||
Dividends paid | (8.3) | (7.9) |
Payments to Noncontrolling Interests | 5.2 | 0 |
Repayment of Krausz debt | 0 | (13.2) |
Shares retained for employee taxes | (0.7) | (1.2) |
Common stock issued | 1.4 | 3.1 |
Other | 0 | 0.4 |
Net Cash Provided by (Used in) Financing Activities, Total | (12.8) | (18.8) |
Effect of currency exchange rate changes on cash | 0.4 | (0.5) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | (39.9) | (148.3) |
Cash and cash equivalents at beginning of period | 176.7 | 347.1 |
Cash and cash equivalents at end of period | $ 136.8 | $ 198.8 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Selected supplemental balance sheet information is presented below. December 31, September 30, 2019 2019 (in millions) Inventories: Purchased components and raw material $ 100.2 $ 95.2 Work in process 44.1 43.7 Finished goods 68.6 52.5 $ 212.9 $ 191.4 Other current assets: Maintenance and repair tooling $ 4.2 $ 4.2 Income taxes 3.1 4.7 Other 18.4 17.1 $ 25.7 $ 26.0 Property, plant and equipment: Land $ 5.2 $ 5.2 Buildings 68.8 68.9 Machinery and equipment 368.8 362.9 Construction in progress 57.0 48.0 499.8 485.0 Accumulated depreciation (275.3) (267.9) $ 224.5 $ 217.1 Other current liabilities: Compensation and benefits $ 20.1 $ 28.5 Customer rebates 10.6 8.7 Taxes other than income taxes 3.1 3.3 Warranty 6.8 6.5 Income taxes — 0.6 Environmental 1.2 1.2 Interest 1.1 7.3 Restructuring 1.6 1.7 Walter Energy Accrual — 22.0 Other 19.4 13.2 $ 63.9 $ 93.0 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is presented below. Pension, net of tax Foreign currency translation Total (in millions) Balance at September 30, 2019 $ (36.0) $ — $ (36.0) Current period other comprehensive income 0.5 3.5 $ 4.0 Balance at December 31, 2019 $ (35.5) $ 3.5 $ (32.0) |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive loss is presented below. Pension, net of tax Foreign currency translation Total (in millions) Balance at September 30, 2019 $ (36.0) $ — $ (36.0) Current period other comprehensive income 0.5 3.5 $ 4.0 Balance at December 31, 2019 $ (35.5) $ 3.5 $ (32.0) |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tabular) | 3 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule Of Selected Supplemental Balance Sheet Information [Table Text Block] | Selected supplemental balance sheet information is presented below. December 31, September 30, 2019 2019 (in millions) Inventories: Purchased components and raw material $ 100.2 $ 95.2 Work in process 44.1 43.7 Finished goods 68.6 52.5 $ 212.9 $ 191.4 Other current assets: Maintenance and repair tooling $ 4.2 $ 4.2 Income taxes 3.1 4.7 Other 18.4 17.1 $ 25.7 $ 26.0 Property, plant and equipment: Land $ 5.2 $ 5.2 Buildings 68.8 68.9 Machinery and equipment 368.8 362.9 Construction in progress 57.0 48.0 499.8 485.0 Accumulated depreciation (275.3) (267.9) $ 224.5 $ 217.1 Other current liabilities: Compensation and benefits $ 20.1 $ 28.5 Customer rebates 10.6 8.7 Taxes other than income taxes 3.1 3.3 Warranty 6.8 6.5 Income taxes — 0.6 Environmental 1.2 1.2 Interest 1.1 7.3 Restructuring 1.6 1.7 Walter Energy Accrual — 22.0 Other 19.4 13.2 $ 63.9 $ 93.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tabular) | 3 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss is presented below. Pension, net of tax Foreign currency translation Total (in millions) Balance at September 30, 2019 $ (36.0) $ — $ (36.0) Current period other comprehensive income 0.5 3.5 $ 4.0 Balance at December 31, 2019 $ (35.5) $ 3.5 $ (32.0) |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Schedule Of Selected Supplemental Balance Sheet Information) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Accrued Liabilities, Current | $ 63.9 | $ 93 |
Inventories: | ||
Purchased components and raw material | 100.2 | 95.2 |
Work in process | 44.1 | 43.7 |
Finished goods | 68.6 | 52.5 |
Inventories, net | 212.9 | 191.4 |
Maintenance and repair tooling | 4.2 | 4.2 |
Income taxes | 3.1 | 4.7 |
Other | 18.4 | 17.1 |
Other | 25.7 | 26 |
Property, plant and equipment: | ||
Land | 5.2 | 5.2 |
Buildings | 68.8 | 68.9 |
Machinery and equipment | 368.8 | 362.9 |
Construction in progress | 57 | 48 |
Property, plant and equipment, gross | 499.8 | 485 |
Accumulated depreciation | (275.3) | (267.9) |
Property, plant and equipment net | 224.5 | 217.1 |
Other current liabilities: | ||
Compensation and benefits | 20.1 | 28.5 |
Customer rebates | 10.6 | 8.7 |
Interest | 1.1 | 7.3 |
Taxes other than income taxes | 3.1 | 3.3 |
Warranty | 6.8 | 6.5 |
Environmental | 1.2 | 1.2 |
Income taxes | 0 | 0.6 |
Restructuring | 1.6 | 1.7 |
Walter accrual | 0 | 22 |
Other Liabilities, Current | 19.4 | $ 13.2 |
Other Accrued Liabilities, Current | $ 63.9 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule Of Accumulated Other Comprehensive Loss) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | $ (36) |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 0 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (32) |
Minimum pension liability, net of tax | 0.5 |
Foreign currency translation | 3.5 |
Other Comprehensive Income (Loss), Net of Tax | 4 |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (35.5) |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 3.5 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (32) |
Organization
Organization | 3 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Mueller Water Products, Inc., a Delaware corporation, together with its consolidated subsidiaries, operates in two business segments: Infrastructure and Technologies. Infrastructure manufactures valves for water and gas systems, including butterfly, iron gate, tapping, check, knife, plug and ball valves, as well as dry-barrel and wet-barrel fire hydrants and a broad line of pipe connection and repair products, such as clamps and couplings used to repair leaks. Technologies offers metering systems, leak detection, pipe condition assessment and other related smart-enabled products and services. The “Company,” “we,” “us” or “our” refer to Mueller Water Products, Inc. and its subsidiaries. With regard to the Company’s segments, “we,” “us” or “our” may also refer to the segment being discussed. In July 2014, Infrastructure acquired a 49% ownership interest in an industrial valve joint venture for $1.7 million. Due to substantive control features in the operating agreement, all of the joint venture’s assets, liabilities and results of operations were included in our consolidated financial statements. We included an adjustment for the income attributable to the noncontrolling interest in selling, general and administrative expenses. Infrastructure acquired the remaining 51% interest in the business on October 3, 2019. On December 3, 2018, we completed our acquisition of Krausz Development Ltd. and subsidiaries (“Krausz”). We include the financial statements of Krausz in our consolidated financial statements on a one-month lag. For the quarter ended December 31, 2018, the consolidated statements of operations and of cash flows exclude the results of Krausz’s operations. Refer to Note 2. for additional disclosures related to the acquisition. Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require us to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, sales and expenses and the disclosure of contingent assets and liabilities for the reporting periods. Actual results could differ from those estimates. All significant intercompany balances and transactions have been eliminated. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended September 30, 2019. In our opinion, all normal and recurring adjustments that we consider necessary for a fair financial statement presentation have been made. The condensed consolidated balance sheet data at September 30, 2019 was derived from audited financial statements, but it does not include all disclosures required by GAAP. Unless the context indicates otherwise, whenever we refer to a particular year, we mean our fiscal year ended or ending September 30 in that particular calendar year. HR-1, commonly referred to as the Tax Cuts and Jobs Act, was enacted on December 22, 2017 and made significant revisions to federal income tax laws, including lowering the corporate income tax rate to 21% from 35%, effective January 1, 2018. In 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance for the recognition of revenue and requiring additional financial statement disclosures. On October 1, 2018, we adopted the new guidance related to revenue recognition from contracts with customers using the modified retrospective approach and no transition adjustment was required. See Note 3. for more information regarding our adoption of this guidance . In 2016, FASB issued new guidance for the recognition of lease assets and lease liabilities for those leases currently referred to as operating leases and requiring additional financial statement disclosures. On October 1, 2019, we adopted the new guidance related to leases using the modified retrospective transition method. See Note 4. for more information regarding our adoption of this guidance. In October 2018, we announced the move of our Middleborough, Massachusetts research and development facility to Atlanta to consolidate our resources and accelerate product innovation through creation of a research and development center of excellence for software and electronics. In November 2019, we announced the planned move of our manufacturing facility in Hammond, Indiana to our new facility in Kimball, Tennessee. Expenses incurred for these moves were primarily personnel-related and are included in strategic reorganization and other charges in the Condensed Consolidated Statements of Operations. Activity in accrued restructuring, reported as part of other current liabilities, is presented below. Three months ended December 31, 2019 2018 (in millions) Beginning balance $ 1.7 $ 0.9 Expense accrued 0.4 2.4 Amounts paid (0.5) (1.1) Ending balance $ 1.6 $ 2.2 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Notes) | 3 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Business Combinations Acquisition of Krausz On December 3, 2018, we completed our acquisition of Krausz, a manufacturer of pipe couplings, grips and clamps with operations in the United States and Israel, for $140.7 million, net of cash acquired, including the assumption and simultaneous repayment of certain debt of $13.2 million. The acquisition of Krausz was financed with cash on hand. We have recognized the assets acquired and liabilities assumed at their estimated acquisition date fair values, with the excess of the purchase price over the estimated fair values of the identifiable net assets acquired recorded as goodwill. The accounting for the business combination is considered final. During the quarter, we reduced property, plant and equipment by $0.3 million, which resulted in an increase in goodwill of $0.3 million. The following is a summary of the fair values of the net assets acquired (in millions): Assets, net of cash: Receivables $ 6.9 Inventories 17.0 Other current assets 0.2 Property, plant and equipment 8.1 Identified intangible assets: Patents 32.1 Customer relationships 8.7 Tradenames 4.6 Favorable leasehold interests 2.3 Goodwill 74.7 Liabilities: Accounts payable (5.5) Other current liabilities (2.9) Deferred income taxes (5.5) Fair value of assets acquired, net of liabilities assumed 140.7 Repayment of Krausz debt (13.2) Consideration paid to seller $ 127.5 The goodwill above is attributable to the strategic opportunities and synergies that we expect to arise from the acquisition of Krausz and the value of its workforce. The goodwill is nondeductible for income tax purposes. The intangible assets of $47.7 million consist of indefinite-lived tradenames and patents, customer relationships and favorable leasehold interests with an estimated weighted average useful life of approximately 12 years. We determined the values of the intangible assets using discounted cash flow methods. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Notes) | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contracts with Customers [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue from Contracts with Customers We recognize revenue when control of promised products or services is transferred to our customers, in amounts that reflect the consideration to which we expect to be entitled in exchange for those products or services. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We determine the appropriate revenue recognition for our contracts with customers by analyzing the type, terms and conditions of each contract or arrangement with a customer. Disaggregation of Revenue We disaggregate our revenues from contracts with customers by reportable segment (Note 11.) and further by geographical region as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Geographical region represents the location of the customer. Contract Asset and Liability Balances The timing of revenue recognition, billings and cash collections results in customer receivables, advance payments and billings in excess of revenue recognized. Customer receivables include amounts billed and currently due from customers as well as unbilled amounts (contract assets). Amounts are billed in accordance with contractual terms and unbilled amounts arise when the timing of billing differs from the timing of revenue recognized. Advance payments and billings in excess of revenue are recognized and recorded as deferred revenue, the majority of which is classified as current based on the timing when we expect to recognize revenue. We include current deferred revenue as part of our accrued expenses. Deferred revenues represent contract liabilities and are recorded when customers remit contractual cash payments in advance of us satisfying performance obligations under contractual arrangements. Contract liabilities are reversed when the performance obligation is satisfied and revenue is recognized. The table below represents the balances of our customer receivables and deferred revenues. December 31, September 30, 2019 2019 (in millions) Billed receivables $ 129.2 $ 171.0 Unbilled receivables 5.2 4.5 Total customer receivables $ 134.4 $ 175.5 Deferred revenues $ 4.4 $ 4.7 Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Our performance obligations are satisfied at a point in time as related to sales of equipment or over time as related to our software hosting and leak detection monitoring services. Performance obligations are supported by customer contracts, which provide frameworks for the nature of the distinct products or services. We allocate the transaction price of each contract to the performance obligations on the basis of standalone selling price and recognize revenue when, or as, control of the performance obligation transfers to the customers. We have elected to use the practical expedient to not adjust the transaction price of a contract for the effects of a significant financing component if, at the inception of the contract, we expect that the period between when we transfer a product or service to a customer and when a customer remits payment will be one year or less. Revenues from products and services transferred to customers at a point in time represented 98% of our revenues in the three months ended December 31, 2019 and 2018. The revenues recognized at a point in time related to the sale of our products was recognized when the obligations of the terms of our contract were satisfied, which generally occurs upon shipment, when control of the product transfers to the customer. Revenues from products and services transferred to customers over time represented 2% of our revenues in the three months ended December 31, 2019 and 2018. We offer warranties to our customers in the form of assurance-type warranties, which provide assurance that the products provided will function as intended and comply with any agreed-upon specifications. These cannot be purchased separately. There was no change to our warranty accounting as a result of the implementation of the new revenue standard and we will continue to use our current cost accrual method in accordance with GAAP. Costs to Obtain or Fulfill a Contract We incur certain incremental costs to obtain a contract, which primarily relate to incremental sales commissions. Our commissions are paid based on orders and shipments and we reserve the right to claw back any commissions in case of product returns or lost collections. As the expected benefit associated with these incremental costs is one year or less based on the nature of the product sold and benefits received, we have applied a practical expedient and therefore do not capitalize the related costs and expense them as incurred, consistent with our previous accounting treatment. |
Leases, Codification Topic 842
Leases, Codification Topic 842 | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure | Leases We adopted the new leasing standard utilizing the modified retrospective approach on October 1, 2019. Adoption of the new standard resulted in an increase to total assets and liabilities due to the recording of lease right-of-use assets (“ROU”) and lease liabilities related to our operating lease portfolio. We elected the package of three practical expedients for transition, which include the carry forward of our leases without reassessing whether any contracts are leases or contain leases, lease classification and initial direct costs and applying hindsight when determining the lease term and when assessing impairment of right-of-use assets at the adoption date. This allows us to update our assessments according to new information and changes in facts and circumstances that have occurred since lease inception. Presentation of Leases The Company leases certain office, warehouse, manufacturing, distribution, and research and development facilities and equipment under operating leases. Our leases have remaining lease terms of 1 year to 14 years. The terms and conditions of our leases may include options to extend or terminate the lease which are considered and included in the lease term when these options are reasonably certain of exercise. We determine if a contract is (or contains) a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. For all classes of leased assets, we have elected the practical expedient to account for any non-lease components in the contract together with the related lease component in the same unit of account. ROU assets and lease liabilities are recognized in our condensed consolidated balance sheets at the commencement date based on the present value of remaining lease payments over the lease term. Additionally, ROU assets include any lease payments made at or before the commencement date, as well as any initial direct costs incurred, and are reduced by any lease incentives received. As most of our operating leases do not provide an implicit rate, we apply our incremental borrowing rate to determine the present value of remaining lease payments. Our incremental borrowing rate is determined based on information available at the commencement date of the lease. Operating leases are included in other noncurrent assets, other current liabilities and noncurrent liabilities in our condensed consolidated balance sheets. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt in our condensed consolidated balance sheets. For all classes of leased assets, we have applied an accounting policy election to exclude short-term leases from recognition in our condensed consolidated balance sheets. A short-term lease has a lease term of 12 months or less at the commencement date and does not include a purchase option that is reasonably certain of exercise. We recognize short-term lease expense in our condensed consolidated income statements on a straight-line basis over the lease term. Our short-term lease expense for the quarter ended December 31, 2019 and short-term lease commitments at December 31, 2019 are immaterial. We have certain lease contracts with terms and conditions that provide for variability in the payment amount based on changes in facts or circumstances occurring after the commencement date. These variable lease payments are recognized in our condensed consolidated income statements as the obligation is incurred. At December 31, 2019, we had no material, legally-binding minimum lease payments for operating leases signed but not yet commenced. We did not have material subleases, leases that imposed significant restrictions or covenants, material related party leases or sale-leaseback arrangements. The components of lease cost for the three months ended December 31, 2019 are presented below, in millions. Operating lease cost $ 1.6 Finance lease cost 0.3 Total lease expense $ 1.9 Supplemental information related to leases for the three months ended December 31, 2019 is presented below, in millions. Cash Flow Information: Operating cash flows from operating leases $ 1.4 Financing cash flows from finance leases $ 0.3 Supplemental information related to leases as of December 31, 2019 is presented below, in millions. Balance Sheet Information: Right of use assets Balance Sheet Caption Operating leases Other noncurrent assets $ 27.2 Finance leases Plant, property and equipment 2.0 Total right of use assets $ 29.2 Lease liabilities Balance Sheet Caption Operating leases - current Other current liabilities $ 4.4 Operating leases - noncurrent Other noncurrent liabilities 24.5 Finance leases - current Current portion of long-term debt 0.9 Finance leases - noncurrent Long-term debt 1.1 Total lease liabilities $ 30.9 Additional supplemental information related to leases as of December 31, 2019 is presented below. Lease term and discount rate: Weighted-average remaining lease term (years): Operating leases 8.41 Finance leases 2.63 Weighted-average interest rate: Operating leases 5.78 % Finance leases 5.37 % Total lease liabilities at December 31, 2019 have scheduled maturities as follows: Operating Leases Finance Leases (in millions) 2020 $ 4.5 $ 0.9 2021 5.1 0.9 2022 4.3 0.6 2023 3.9 0.2 2024 3.7 — Thereafter 16.1 — Total lease payments 37.6 2.6 Less: imputed interest 8.7 0.6 Present value of lease liabilities $ 28.9 $ 2.0 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The reconciliation between the U.S. federal statutory income tax rate and the effective tax rate is presented below. Three months ended December 31, 2019 2018 U.S. federal statutory income tax rate 21.0 % 21.0 % Adjustments to reconcile to the effective tax rate: State income taxes, net of federal benefit 4.5 3.3 Excess tax (benefits) related to stock compensation (1.5) 1.3 Tax credits (1.1) 0.4 Global Intangible Low-taxed Income 0.1 (0.1) Foreign income taxes (0.7) — Valuation allowances (0.7) — Other 1.5 (0.3) 23.1 % 25.6 % Walter Energy Accrual (0.3) (5.8) Remeasurement related to tax law changes — 2.1 Effective income tax rate 22.8 % 21.9 % At December 31, 2019 and September 30, 2019, the gross liabilities for unrecognized income tax benefits were $3.5 million and $3.3 million, respectively. |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation between the U.S. federal statutory income tax rate and the effective tax rate is presented below. Three months ended December 31, 2019 2018 U.S. federal statutory income tax rate 21.0 % 21.0 % Adjustments to reconcile to the effective tax rate: State income taxes, net of federal benefit 4.5 3.3 Excess tax (benefits) related to stock compensation (1.5) 1.3 Tax credits (1.1) 0.4 Global Intangible Low-taxed Income 0.1 (0.1) Foreign income taxes (0.7) — Valuation allowances (0.7) — Other 1.5 (0.3) 23.1 % 25.6 % Walter Energy Accrual (0.3) (5.8) Remeasurement related to tax law changes — 2.1 Effective income tax rate 22.8 % 21.9 % |
Borrowing Arrangements
Borrowing Arrangements | 3 Months Ended |
Dec. 31, 2019 | |
Long-term Debt and Lease Obligation [Abstract] | |
Borrowing Arrangements | Borrowing Arrangements The components of our long-term debt are presented below. December 31, September 30, 2019 2019 (in millions) 5.5% Senior Notes $ 450.0 $ 450.0 ABL Agreement — — Finance leases 2.0 2.1 452.0 452.1 Less deferred financing costs 5.6 5.8 Less current portion 0.9 0.9 Long-term debt $ 445.5 $ 445.4 5.5% Senior Unsecured Notes. On June 12, 2018, we privately issued $450.0 million of 5.5% Senior Unsecured Notes (“Notes”), which mature in 2026 and bear interest at 5.5%. We capitalized $6.6 million of financing costs, which are being amortized over the term of the Notes using the effective interest method. Proceeds from the Notes, along with other cash, were used to repay our Term Loan. Substantially all of our U.S. subsidiaries guarantee the Notes, which are subordinate to borrowings under the ABL. Based on quoted market prices, the outstanding Notes had a fair value of $473.6 million at December 31, 2019. ABL Agreement . At December 31, 2019, our asset based lending agreement (“ABL Agreement”) consisted of a revolving credit facility for up to $175 million of revolving credit borrowings, swing line loans and letters of credit. The ABL Agreement permits us to increase the size of the credit facility by an additional $150 million in certain circumstances subject to adequate borrowing base availability. We may borrow up to $25 million through swing line loans and we are permitted to issue up to $60 million of letters of credit. Borrowings under the ABL Agreement bear interest at a floating rate equal to LIBOR, plus a margin ranging from 125 to 150 basis points, or a base rate, as defined in the ABL Agreement, plus a margin ranging from 25 to 50 basis points. At December 31, 2019, the applicable rate was LIBOR plus 125 basis points. |
Derivative Financial Instrument
Derivative Financial Instruments (Notes) | 3 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Financial Instruments In connection with the acquisition of Singer Valve in 2017, we loaned funds to one of our Canadian subsidiaries. Although this intercompany loan has no direct effect on our consolidated financial statements, it creates exposure to currency risk for the Canadian subsidiary. To reduce this exposure, we entered into a U.S. dollar-Canadian dollar swap contract with the Canadian subsidiary and an offsetting Canadian dollar-U.S. dollar swap with a domestic bank. We have not designated these swaps as hedges and the changes in their fair values are included in earnings, where they offset the currency gains and losses associated with the intercompany loan. The values of our currency swap contracts were liabilities of $0.6 million and $0.3 million as of December 31, 2019 and September 30, 2019, respectively, and are included in other noncurrent liabilities in our Condensed Consolidated Balance Sheets. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Retirement Plans | Retirement Plans The components of net periodic benefit cost for our pension plans are presented below. Three months ended December 31, 2019 2018 (in millions) Service cost $ 0.4 $ 0.4 Pension costs (benefits) other than service: Interest cost 2.8 3.5 Expected return on plan assets (4.2) (4.1) Amortization of actuarial net loss 0.7 0.5 Pension costs (benefits) other than service (0.7) (0.1) Net periodic (benefit) cost $ (0.3) $ 0.3 The amortization of actuarial losses, net of tax, is recorded as a component of other comprehensive loss. |
Stock-based Compensation Plans
Stock-based Compensation Plans | 3 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Payment Arrangement [Text Block] | Stock-based Compensation Plans We have granted various forms of stock-based compensation, including stock options, restricted stock units, performance-based restricted stock units (“PRSUs”) and market-based restricted stock units (“MRSUs”) under our Amended and Restated 2006 Mueller Water Products, Inc. Stock Incentive Plan (the “2006 Stock Plan”). A PRSU award consists of a number of units that may be paid out at the end of a multi-year award cycle consisting of a series of annual performance periods coinciding with our fiscal years. After we establish the financial performance targets related to PRSUs for a given performance period, typically during the first quarter of that fiscal year, we consider that portion of a PRSU award to be granted. Thus, each award consists of a grant in the year of award and grants in the designated following years. Settlements, in our common shares, will range from zero to two times the number of PRSUs granted, depending on our financial performance against the targets. A MRSU award represents a target number of units that may be paid out at the end of a three year award cycle based on a calculation of the Company's relative total shareholder return (“TSR”) performance as compared with a selected peer group's total shareholder return. Settlements, in our common shares, will range from zero to two times the number of MRSUs granted, depending on our TSR performance versus the peer group. The per-unit fair value of the MRSU award was $14.94, as determined using a Monte Carlo simulation with the following inputs: December 31, 2019 Dividend yield 1.87 % Risk-free rate 1.53 % Expected term (in years) 2.83 We awarded 196,284 stock-settled PRSUs and 147,213 MRSUs in the three months ended December 31, 2019 that are scheduled to settle in 3 years. We issued 93,647 shares and 181,065 shares of common stock during the three months ended December 31, 2019 and 2018, respectively, to settle PRSUs that vested during the periods. In addition to the PRSU activity, 132,303 restricted stock units vested during the three months ended December 31, 2019, respectively. We have granted cash-settled Phantom Plan instruments under the Mueller Water Products, Inc. Phantom Plan (“Phantom Plan”). At December 31, 2019, the outstanding Phantom Plan instruments had a fair value of $11.98 per instrument and our liability for Phantom Plan instruments was $1.0 million. We granted stock-based compensation awards under the 2006 Stock Plan, the Mueller Water Products, Inc. 2006 Employee Stock Purchase Plan, and the Phantom Plan during the three months ended December 31, 2019 as follows. Number granted Weighted average grant date fair value per instrument Total grant date fair value Restricted stock units 162,433 $ 11.26 $ 1.8 Employee stock purchase plan instruments 39,492 1.97 0.1 Phantom Plan awards 188,973 11.26 2.1 PRSUs: 2020 award 58,040 11.26 0.7 2019 award 102,203 11.26 1.2 2018 award 44,451 11.26 0.5 MRSUs 147,213 14.94 2.2 $ 8.6 Operating income included stock-based compensation expense of $1.9 million and $1.7 million during the three months ended December 31, 2019 and 2018, respectively. At December 31, 2019, there was approximately $11.8 million of unrecognized compensation expense related to stock-based compensation arrangements and there were 218,292 PRSUs that have been awarded for the 2021 and 2022 performance periods for which performance goals have not been set. We excluded 108,976 and 165,467 of stock-based compensation instruments from the calculations of diluted earnings per share for the quarters ended December 31, 2019 and 2018, respectively, since their inclusion would have been antidilutive. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Information Summarized financial information for our segments is presented below. Three months ended December 31, 2019 2018 (in millions) Net sales, excluding intercompany: Infrastructure $ 192.8 $ 172.0 Technologies 19.8 20.8 $ 212.6 $ 192.8 Operating income (loss): Infrastructure $ 35.7 $ 30.9 Technologies (2.0) (3.7) Corporate (13.4) (11.3) $ 20.3 $ 15.9 Depreciation and amortization: Infrastructure $ 12.0 $ 10.1 Technologies 2.0 2.0 Corporate — — $ 14.0 $ 12.1 Strategic reorganization and other charges: Infrastructure $ — $ — Technologies — — Corporate 2.4 3.2 $ 2.4 $ 3.2 Capital expenditures: Infrastructure $ 14.5 $ 14.8 Technologies 0.6 1.1 Corporate 0.1 — $ 15.2 $ 15.9 Infrastructure disaggregated net revenues: Central $ 46.5 $ 40.3 Northeast 41.9 37.9 Southeast 39.6 34.7 West 46.0 44.8 United States 174.0 157.7 Canada 11.6 9.9 Other international locations 7.2 4.4 $ 192.8 $ 172.0 Technologies disaggregated net revenues: Central $ 4.7 $ 6.5 Northeast 6.1 3.4 Southeast 5.8 6.8 West 2.0 2.7 United States 18.6 19.4 Canada 0.6 0.2 Other international locations 0.6 1.2 $ 19.8 $ 20.8 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies We are involved in various legal proceedings that have arisen in the normal course of operations, including the proceedings summarized below. We provide for costs relating to these matters when a loss is probable and the amount is reasonably estimable. Administrative costs related to these matters are expensed as incurred. The effect of the outcome of these matters on our financial statements cannot be predicted with certainty as any such effect depends on the amount and timing of the resolution of such matters. Other than the litigation described below, we do not believe that any of our outstanding litigation would have a material adverse effect on our business or prospects. Environmental. We are subject to a wide variety of laws and regulations concerning the protection of the environment, both with respect to the operations at many of our properties and with respect to remediating environmental conditions that may exist at our own or other properties. We accrue for environmental expenses resulting from existing conditions that relate to past operations when the costs are probable and reasonably estimable. In the acquisition agreement pursuant to which a predecessor to Tyco International plc, now Johnson Controls International plc (“Tyco”), sold our businesses to a previous owner in August 1999, Tyco agreed to indemnify us and our affiliates, among other things, for all “Excluded Liabilities.” Excluded Liabilities include, among other things, substantially all liabilities relating to the time prior to August 1999, including environmental liabilities. The indemnity survives indefinitely. Tyco’s indemnity does not cover liabilities to the extent caused by us or the operation of our businesses after August 1999, nor does it cover liabilities arising with respect to businesses or sites acquired after August 1999. Since 2007, Tyco has engaged in multiple corporate restructurings, split-offs and divestitures. While none of these transactions directly affects the indemnification obligations of the Tyco indemnitors under the 1999 acquisition agreement, the result of such transactions is that the assets of, and control over, such Tyco indemnitors has changed. Should any of these Tyco indemnitors become financially unable or fail to comply with the terms of the indemnity, we may be responsible for such obligations or liabilities. On July 13, 2010, Rohcan Investments Limited, the former owner of property leased by Mueller Canada Ltd. and located in Milton, Ontario, filed suit against Mueller Canada Ltd. and its directors seeking C$10.0 million in damages arising from the defendants’ alleged environmental contamination of the property and breach of lease. Mueller Canada Ltd. leased the property from 1988 through 2008. We are pursuing indemnification from a former owner for certain potential liabilities that are alleged in this lawsuit, and we have accrued for other liabilities not covered by indemnification. On December 7, 2011, the Court denied the plaintiff’s motion for summary judgment. The purchaser of U.S. Pipe has been identified as a “potentially responsible party” (“PRP”) under the Comprehensive Environmental Response, Compensation and Liability Act in connection with a former manufacturing facility operated by U.S. Pipe that was in the vicinity of a proposed Superfund site located in North Birmingham, Alabama. Under the terms of the acquisition agreement relating to our sale of U.S. Pipe, we agreed to indemnify the purchaser for certain environmental liabilities, including those arising out of the former manufacturing site in North Birmingham. Accordingly, the purchaser tendered the matter to us for indemnification, which we accepted. Ultimate liability for the site will depend on many factors that have not yet been determined, including the determination of EPA’s remediation costs, the number and financial viability of the other PRPs (there are four other PRPs currently) and the determination of the final allocation of the costs among the PRPs. Accordingly, because the amount of such costs cannot be reasonably estimated at this time, no amounts have been accrued for this matter at December 31, 2019. Walter Energy . We were a member of the Walter Energy, Inc (“Walter Energy”) federal tax consolidated group through December 14, 2006, at which time the Company was spun-off from Walter Energy. Until our spin-off from Walter Energy, we joined in the filing of Walter Energy’s consolidated federal income tax return for each taxable year during which we were a member of the consolidated group. As a result, we were jointly and severally liable for the federal income tax liability, if any, of the consolidated group for each of those years. In July 2015, Walter Energy filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in the Northern District of Alabama (“Bankruptcy Case”). The Internal Revenue Service (“IRS”) alleged that Walter Energy owed substantial amounts (“Walter Tax Liability”), and on January 11, 2016, the IRS filed a proof of claim in the Bankruptcy Case, alleging that Walter Energy owed taxes, interest and penalties in an aggregate amount of $554.3 million. In the proof of claim, the IRS included an alternative calculation in an aggregate amount of $860.4 million. On November 5, 2019, we agreed to be bound by a settlement agreement between the bankruptcy trustee in the Bankruptcy Case and the IRS to resolve the Walter Tax Liability. On November 18, 2019, the settlement agreement was approved by the U.S. Bankruptcy Court in the Northern District of Alabama. Under the terms of the settlement agreement, we contributed approximately $22.2 million to the settlement. All appeal periods have expired, and our liabilities with respect to the Walter Tax Liability have been fully resolved. Chapman v. Mueller Water Products, et al. In 2017, our warranty analyses identified that certain Technologies radio products produced prior to 2017 and installed in particularly harsh environments had been failing at higher than expected rates. During the quarter ended March 31, 2017, we conducted additional testing of these products and revised our estimates of warranty expenses. As a result, we recorded additional warranty expense of $9.8 million in the second quarter of 2017. During the quarter ended June 30, 2018, we completed a similar analysis and determined, based on this new information, that certain other Technologies products had been failing at higher-than-expected rates as well and that the average cost to repair or replace certain products under warranty was higher than previously estimated. As a result, in the third quarter of 2018, we recorded additional warranty expense of $14.1 million associated with such products. Related to the above warranty expenses, on April 11, 2019, an alleged stockholder filed a putative class action lawsuit against Mueller Water Products, Inc. and certain of our former and current officers (collectively, the “Defendants”) in the U.S. District Court for the Southern District of New York. The proposed class consists of all persons and entities that acquired our securities between May 9, 2016 and August 6, 2018 (the “Class Period”). The complaint alleges violations of the federal securities laws, including, among other things, that we made materially false and/or misleading statements and failed to disclose material adverse facts about our business, operations, and prospects during the proposed Class Period. The plaintiff seeks compensatory damages and attorneys’ fees and costs but does not specify the amount. Accordingly, we cannot reasonably estimate the amount of any cost or liabilities related to this matter and therefore no amounts have been accrued related to this matter as of December 31, 2019. Defendants filed their motion to dismiss on November 1, 2019 and second motion to dismiss (in response to the second amended complaint filed on December 24, 2019) on January 31, 2020. We believe the allegations are without merit and intend to vigorously defend against the claims. However, the outcome of this legal proceeding cannot be predicted with certainty. City of Jackson, MS v. Siemens Industry, Inc., et al. On or about August 22, 2013, Mueller Systems, LLC (“Mueller Systems”) entered into an agreement with Siemens Industries, Inc (“Siemens”) to provide automated meter infrastructure (“AMI”) products and services to Siemens as part of Siemens’ project for the City of Jackson, MS (the “City”). This project included products and services for the City’s water treatment plants, sewer lines and billing system, which were provided by parties other than Mueller Systems (the “Project”). On June 11, 2018, the City filed a lawsuit against Siemens and several of its contractors (excluding Mueller Systems) for multiple claims related to the Project, including claims for fraud, negligence, breach of implied warranty of good workmanship, negligent representation, civil conspiracy, unjust enrichment, breach of contract and breach of covenant of good faith and fair dealing (“Siemens Lawsuit”). In the Siemens Lawsuit, the City alleged damages in excess of $450.0 million. On November 12, 2019, the City filed an amended complaint, adding Mueller Systems as a defendant in the Siemens Lawsuit. Mueller Systems is reviewing the claims to determine the portion, if any, of the City’s alleged damages that may be related to Mueller Systems’ AMI products and services. However, there remains a high degree of uncertainty around these claims, as well as their potential effect on Mueller Systems’ future operations, earnings, cash flows and financial condition. Accordingly, at this time, it is not practicable to estimate the magnitude and timing of any possible obligations or payments. Mass Shooting Event at our Henry Pratt Facility in Aurora, Illinois. On February 15, 2019, we experienced a mass shooting event at our Henry Pratt facility in Aurora, Illinois, in which five employees were killed and one employee and six law enforcement officers were injured. Various workers’ compensation claims arising from the event have been made to date, and we anticipate that additional claims may be made, and that liability under such claims, if any, is not expected to have a material adverse effect on our results of operations or cash flows. However, the possibility of other legal proceedings, and any related effects, arising from this event cannot be predicted with certainty. Indemnifications . We are a party to contracts in which it is common for us to agree to indemnify third parties for certain liabilities that arise out of or relate to the subject matter of the contract. In some cases, this indemnity extends to related liabilities arising from the negligence of the indemnified parties, but usually excludes any liabilities caused by gross negligence or willful misconduct. We cannot estimate the potential amount of future payments under these indemnities until events arise that would trigger a liability under the indemnities. Additionally, in connection with the sale of assets and the divestiture of businesses, such as the divestitures of U.S. Pipe and Anvil, we may agree to indemnify buyers and related parties for certain losses or liabilities incurred by these parties with respect to: (i) the representations and warranties made by us to these parties in connection with the sale and (ii) liabilities related to the pre-closing operations of the assets or business sold. Indemnities related to pre-closing operations generally include certain environmental and tax liabilities and other liabilities not assumed by these parties in the transaction. Indemnities related to the pre-closing operations of sold assets or businesses normally do not represent additional liabilities to us, but simply serve to protect these parties from potential liability associated with our obligations existing at the time of the sale. As with any liability, we have accrued for those pre-closing obligations that are considered probable and reasonably estimable. Should circumstances change, increasing the likelihood of payments related to a specific indemnity, we will accrue a liability when future payment is probable and the amount is reasonably estimable. Other Matters. We monitor and analyze our warranty experience and costs periodically and may revise our accruals as necessary. Critical factors in our analyses include warranty terms, specific claim situations, general incurred and projected failure rates, the nature of product failures, product and labor costs, and general business conditions. We are party to a number of lawsuits arising in the ordinary course of business, including product liability cases for products manufactured by us or third parties. While the results of litigation cannot be predicted with certainty, we believe that the final outcome of such other litigation is not likely to have a materially adverse effect on our business or prospects. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 30, 2020, our board of directors declared a dividend of $0.0525 per share on our common stock, payable on or about February 20, 2020 to stockholders of record at the close of business on February 10, 2020. |
Organization Restructuring Roll
Organization Restructuring Rollforward (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | Activity in accrued restructuring, reported as part of other current liabilities, is presented below. Three months ended December 31, 2019 2018 (in millions) Beginning balance $ 1.7 $ 0.9 Expense accrued 0.4 2.4 Amounts paid (0.5) (1.1) Ending balance $ 1.6 $ 2.2 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following is a summary of the fair values of the net assets acquired (in millions): Assets, net of cash: Receivables $ 6.9 Inventories 17.0 Other current assets 0.2 Property, plant and equipment 8.1 Identified intangible assets: Patents 32.1 Customer relationships 8.7 Tradenames 4.6 Favorable leasehold interests 2.3 Goodwill 74.7 Liabilities: Accounts payable (5.5) Other current liabilities (2.9) Deferred income taxes (5.5) Fair value of assets acquired, net of liabilities assumed 140.7 Repayment of Krausz debt (13.2) Consideration paid to seller $ 127.5 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Financing Receivables, Minimum Payments [Table Text Block] | The table below represents the balances of our customer receivables and deferred revenues. December 31, September 30, 2019 2019 (in millions) Billed receivables $ 129.2 $ 171.0 Unbilled receivables 5.2 4.5 Total customer receivables $ 134.4 $ 175.5 Deferred revenues $ 4.4 $ 4.7 |
Income Taxes Rate Reconciliatio
Income Taxes Rate Reconciliation (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation between the U.S. federal statutory income tax rate and the effective tax rate is presented below. Three months ended December 31, 2019 2018 U.S. federal statutory income tax rate 21.0 % 21.0 % Adjustments to reconcile to the effective tax rate: State income taxes, net of federal benefit 4.5 3.3 Excess tax (benefits) related to stock compensation (1.5) 1.3 Tax credits (1.1) 0.4 Global Intangible Low-taxed Income 0.1 (0.1) Foreign income taxes (0.7) — Valuation allowances (0.7) — Other 1.5 (0.3) 23.1 % 25.6 % Walter Energy Accrual (0.3) (5.8) Remeasurement related to tax law changes — 2.1 Effective income tax rate 22.8 % 21.9 % |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Long-term Debt and Lease Obligation [Abstract] | |
Components of Long-Term Debt | The components of our long-term debt are presented below. December 31, September 30, 2019 2019 (in millions) 5.5% Senior Notes $ 450.0 $ 450.0 ABL Agreement — — Finance leases 2.0 2.1 452.0 452.1 Less deferred financing costs 5.6 5.8 Less current portion 0.9 0.9 Long-term debt $ 445.5 $ 445.4 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Schedule of Net Periodic Benefit Cost | The components of net periodic benefit cost for our pension plans are presented below. Three months ended December 31, 2019 2018 (in millions) Service cost $ 0.4 $ 0.4 Pension costs (benefits) other than service: Interest cost 2.8 3.5 Expected return on plan assets (4.2) (4.1) Amortization of actuarial net loss 0.7 0.5 Pension costs (benefits) other than service (0.7) (0.1) Net periodic (benefit) cost $ (0.3) $ 0.3 |
Stock-based Compensation Plans
Stock-based Compensation Plans (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Payment Arrangement, Activity [Table Text Block] | Number granted Weighted average grant date fair value per instrument Total grant date fair value Restricted stock units 162,433 $ 11.26 $ 1.8 Employee stock purchase plan instruments 39,492 1.97 0.1 Phantom Plan awards 188,973 11.26 2.1 PRSUs: 2020 award 58,040 11.26 0.7 2019 award 102,203 11.26 1.2 2018 award 44,451 11.26 0.5 MRSUs 147,213 14.94 2.2 $ 8.6 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Schedule Of Selected Supplemental Balance Sheet Information | Summarized financial information for our segments is presented below. Three months ended December 31, 2019 2018 (in millions) Net sales, excluding intercompany: Infrastructure $ 192.8 $ 172.0 Technologies 19.8 20.8 $ 212.6 $ 192.8 Operating income (loss): Infrastructure $ 35.7 $ 30.9 Technologies (2.0) (3.7) Corporate (13.4) (11.3) $ 20.3 $ 15.9 Depreciation and amortization: Infrastructure $ 12.0 $ 10.1 Technologies 2.0 2.0 Corporate — — $ 14.0 $ 12.1 Strategic reorganization and other charges: Infrastructure $ — $ — Technologies — — Corporate 2.4 3.2 $ 2.4 $ 3.2 Capital expenditures: Infrastructure $ 14.5 $ 14.8 Technologies 0.6 1.1 Corporate 0.1 — $ 15.2 $ 15.9 Infrastructure disaggregated net revenues: Central $ 46.5 $ 40.3 Northeast 41.9 37.9 Southeast 39.6 34.7 West 46.0 44.8 United States 174.0 157.7 Canada 11.6 9.9 Other international locations 7.2 4.4 $ 192.8 $ 172.0 Technologies disaggregated net revenues: Central $ 4.7 $ 6.5 Northeast 6.1 3.4 Southeast 5.8 6.8 West 2.0 2.7 United States 18.6 19.4 Canada 0.6 0.2 Other international locations 0.6 1.2 $ 19.8 $ 20.8 |
Organization (Details)
Organization (Details) - USD ($) $ in Millions | Oct. 03, 2019 | Jul. 31, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2018 |
Segment Reporting Information [Line Items] | ||||||
Beginning balance | $ 1.7 | $ 0.9 | ||||
Restructuring | 2.4 | 3.2 | ||||
Payments | 0.5 | 1.1 | ||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 51.00% | 49.00% | ||||
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost | $ (0.7) | $ (0.1) | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 35.00% | |||
Payments to Acquire Interest in Joint Venture | $ 2.2 | $ 0 | $ 1.7 | |||
Mueller Co. [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring | $ 0 | $ 0 |
Organization Restructuring (Det
Organization Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | $ 1.7 | $ 0.9 |
Restructuring | 2.4 | 3.2 |
Payments | (0.5) | (1.1) |
Mueller One Project [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $ 0.4 | $ 2.4 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Business Combinations [Abstract] | |||
Business Combination, Consideration Transferred | $ 140.7 | ||
Repayments of Unsecured Debt | $ 0 | $ 13.2 | $ 13.2 |
Business Acquisition [Line Items] | |||
Receivables | 6.9 | ||
Inventories | 17 | ||
Other current assets | 0.2 | ||
Property, plant and equipment | 8.1 | ||
Indefinite-lived Intangible Assets Acquired | 4.6 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 2.9 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 5.5 | ||
Consideration paid considered as cash flow used in financing | 140.7 | ||
Payments for (Proceeds from) Other Investing Activities | $ 127.5 | ||
Goodwill | 74.7 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 5.5 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | 47.7 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | 0.3 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment | $ 0.3 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | ||
Above Market Leases [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 2.3 | ||
Patents [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 32.1 | ||
Customer-Related Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 8.7 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Revenue from External Customer [Line Items] | |||
Revenue from Contract with Customer [Text Block] | Revenue from Contracts with Customers We recognize revenue when control of promised products or services is transferred to our customers, in amounts that reflect the consideration to which we expect to be entitled in exchange for those products or services. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We determine the appropriate revenue recognition for our contracts with customers by analyzing the type, terms and conditions of each contract or arrangement with a customer. Disaggregation of Revenue We disaggregate our revenues from contracts with customers by reportable segment (Note 11.) and further by geographical region as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Geographical region represents the location of the customer. Contract Asset and Liability Balances The timing of revenue recognition, billings and cash collections results in customer receivables, advance payments and billings in excess of revenue recognized. Customer receivables include amounts billed and currently due from customers as well as unbilled amounts (contract assets). Amounts are billed in accordance with contractual terms and unbilled amounts arise when the timing of billing differs from the timing of revenue recognized. Advance payments and billings in excess of revenue are recognized and recorded as deferred revenue, the majority of which is classified as current based on the timing when we expect to recognize revenue. We include current deferred revenue as part of our accrued expenses. Deferred revenues represent contract liabilities and are recorded when customers remit contractual cash payments in advance of us satisfying performance obligations under contractual arrangements. Contract liabilities are reversed when the performance obligation is satisfied and revenue is recognized. The table below represents the balances of our customer receivables and deferred revenues. December 31, September 30, 2019 2019 (in millions) Billed receivables $ 129.2 $ 171.0 Unbilled receivables 5.2 4.5 Total customer receivables $ 134.4 $ 175.5 Deferred revenues $ 4.4 $ 4.7 Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Our performance obligations are satisfied at a point in time as related to sales of equipment or over time as related to our software hosting and leak detection monitoring services. Performance obligations are supported by customer contracts, which provide frameworks for the nature of the distinct products or services. We allocate the transaction price of each contract to the performance obligations on the basis of standalone selling price and recognize revenue when, or as, control of the performance obligation transfers to the customers. We have elected to use the practical expedient to not adjust the transaction price of a contract for the effects of a significant financing component if, at the inception of the contract, we expect that the period between when we transfer a product or service to a customer and when a customer remits payment will be one year or less. Revenues from products and services transferred to customers at a point in time represented 98% of our revenues in the three months ended December 31, 2019 and 2018. The revenues recognized at a point in time related to the sale of our products was recognized when the obligations of the terms of our contract were satisfied, which generally occurs upon shipment, when control of the product transfers to the customer. Revenues from products and services transferred to customers over time represented 2% of our revenues in the three months ended December 31, 2019 and 2018. We offer warranties to our customers in the form of assurance-type warranties, which provide assurance that the products provided will function as intended and comply with any agreed-upon specifications. These cannot be purchased separately. There was no change to our warranty accounting as a result of the implementation of the new revenue standard and we will continue to use our current cost accrual method in accordance with GAAP. Costs to Obtain or Fulfill a Contract We incur certain incremental costs to obtain a contract, which primarily relate to incremental sales commissions. Our commissions are paid based on orders and shipments and we reserve the right to claw back any commissions in case of product returns or lost collections. As the expected benefit associated with these incremental costs is one year or less based on the nature of the product sold and benefits received, we have applied a practical expedient and therefore do not capitalize the related costs and expense them as incurred, consistent with our previous accounting treatment. | ||
Billed Contracts Receivable | $ 129.2 | $ 171 | |
Deferred Revenue | 4.4 | 4.7 | |
Unbilled receivables | 5.2 | 4.5 | |
Total customer receivables | $ 134.4 | $ 175.5 | |
Transferred at Point in Time [Member] | |||
Revenue from External Customer [Line Items] | |||
Percent of Revenue by Recognition Timing | 98.00% | 98.00% | |
Transferred over Time [Member] | |||
Revenue from External Customer [Line Items] | |||
Percent of Revenue by Recognition Timing | 2.00% | 2.00% |
Leases, Codification Topic 842
Leases, Codification Topic 842 (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Right-of-Use Asset | $ 27.2 |
Finance Lease, Right-of-Use Asset | 2 |
Operating Lease, Liability, Current | 4.4 |
Operating Lease, Liability, Noncurrent | 24.5 |
Finance Lease, Liability, Current | 0.9 |
Finance Lease, Liability, Noncurrent | 1.1 |
Operating Lease, Payments | 1.4 |
Finance Lease, Principal Payments | $ 0.3 |
Operating Lease, Weighted Average Remaining Lease Term | 8 years 4 months 28 days |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 7 months 17 days |
Operating Lease, Weighted Average Discount Rate, Percent | 5.78% |
Finance Lease, Weighted Average Discount Rate, Percent | 5.37% |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 4.5 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 5.1 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 4.3 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 3.9 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 3.7 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 16.1 |
Lessee, Operating Lease, Liability, Payments, Due | 37.6 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 8.7 |
Operating Lease, Liability | 28.9 |
Total right of use assets | 29.2 |
Total lease liabilities | 30.9 |
Operating Lease, Expense | 1.6 |
Finance Lease, Right-of-Use Asset, Amortization | 0.3 |
Total lease expense | 1.9 |
Finance Lease, Liability | 2 |
Finance Lease, Liability, Payments, Remainder of Fiscal Year | 0.9 |
Finance Lease, Liability, Payments, Due Year Two | 0.9 |
Finance Lease, Liability, Payments, Due Year Three | 0.6 |
Finance Lease, Liability, Payments, Due Year Four | 0.2 |
Finance Lease, Liability, Payments, Due Year Five | 0 |
Finance Lease, Liability, Payments, Due after Year Five | 0 |
Finance Lease, Liability, Payment, Due | 2.6 |
Finance Lease, Liability, Undiscounted Excess Amount | $ 0.6 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized Tax Benefits | $ 3.5 | $ 3.3 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 35.00% | |
State income taxes, net of federal benefit | 4.50% | 3.30% | ||
Tax benefits from stock compensation | (1.50%) | (1.30%) | ||
Tax credits | (1.10%) | (0.40%) | ||
Other | 1.50% | (0.30%) | ||
Walter Energy accrual | (0.30%) | (5.80%) |
Income Taxes Income Tax Rate Re
Income Taxes Income Tax Rate Reconciliation (Details) | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 35.00% |
Adjustments to reconcile to the effective tax rate: | |||
State income taxes, net of federal benefit | 4.50% | 3.30% | |
Valuation allowance adjustment related to stock compensation | (0.70%) | 0.00% | |
Tax benefits from stock compensation | (1.50%) | (1.30%) | |
Tax credits | (1.10%) | (0.40%) | |
Effective Income Tax Rate Reconciliation, GILTI, percent | 0.10% | (0.10%) | |
Other | 1.50% | (0.30%) | |
Walter Energy accrual | (0.30%) | (5.80%) | |
Change in rate for deferred taxes | 0.00% | 2.10% | |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | (0.70%) | 0.00% |
Borrowing Arrangements (Narrati
Borrowing Arrangements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 12, 2018 | |
Agreement termination date | Jul. 13, 2021 | ||||
Cash and cash equivalents | $ 136.8 | $ 198.8 | $ 176.7 | $ 347.1 | |
Domestic Line of Credit [Member] | |||||
Revolving credit facility amount | $ (175) | ||||
Line of Credit Facility, Interest Rate at Period End | 12500.00% | ||||
Outstanding letter of credit accrued fees and expenses | $ 14.5 | ||||
Excess availability reduced by outstanding borrowings, outstanding letters of credit and accrued fees and expenses | 122 | ||||
Future maturities of outstanding borrowings | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 175 | ||||
Potential increase size of the credit facility by an additional amount | 150 | ||||
Aggregate commitments availability | $ 17.5 | ||||
Aggregate commitments availability, percentage | 10.00% | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 122 | ||||
Unsecured Debt [Member] | |||||
Long-term Debt, Gross | $ 450 | ||||
Future maturities of outstanding borrowings | |||||
Payments of Debt Issuance Costs | $ 6.6 | ||||
Bonds [Member] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.50% | ||||
Future maturities of outstanding borrowings | |||||
Financial Liabilities Fair Value Disclosure | 473.6 | ||||
Swing Line Loans [Member] | |||||
Revolving credit facility amount | (25) | ||||
Future maturities of outstanding borrowings | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 25 | ||||
Letters Of Credit Outstanding [Member] | |||||
Revolving credit facility amount | (60) | ||||
Future maturities of outstanding borrowings | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60 | ||||
Minimum [Member] | Domestic Line of Credit [Member] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 2500.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Long-term Debt [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2500.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Domestic Line of Credit [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 12500.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Domestic Line of Credit [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 15000.00% | ||||
Base Rate [Member] | Maximum [Member] | Domestic Line of Credit [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 5000.00% |
Borrowing Arrangements (Compone
Borrowing Arrangements (Components Of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Debt instrument | $ 452 | $ 452.1 |
Deferred financing costs | 5.6 | 5.8 |
Current portion of long-term debt | 0.9 | 0.9 |
Long-term debt | 445.5 | 445.4 |
Domestic Line of Credit [Member] | ||
Debt instrument | 0 | 0 |
Unsecured Debt [Member] | ||
5.5% Senior Notes | 450 | 450 |
Other [Member] | ||
Debt instrument | $ 2 | $ 2.1 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Other noncurrent liabilities | $ 0.6 | $ 0.3 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Decrease in accumulated other comprehensive loss net of tax | $ 0.5 |
Retirement Plans (Net Periodic
Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Service Cost | $ 0.4 | $ 0.4 |
Defined Benefit Plan, Interest Cost | 2.8 | 3.5 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (4.2) | (4.1) |
Amortization of actuarial net loss | 0.7 | 0.5 |
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost | (0.7) | (0.1) |
Net periodic benefit cost | $ (0.3) | $ 0.3 |
Stock-based Compensation Plan_2
Stock-based Compensation Plans (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | Sep. 30, 2019 | |
Share-based Payment Arrangement, Expense | $ | $ 1.9 | $ 1.7 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 11.8 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 108,976 | 165,467 | |
Phantom Share Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instrument Other than Option, Nonvested, Intrinsic Value | $ / shares | $ 11.98 | ||
Share-based compensation liability | $ | $ 1 | ||
Granted, shares | 188,973 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 11.26 | ||
Granted, shares | 188,973 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 93,647 | 181,065 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 196,284 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based compensation, units awarded but not yet granted | 218,292 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 132,303 | ||
Granted, shares | 162,433 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 11.26 | ||
Granted, shares | 162,433 | ||
Market Based Performance Shares | |||
Granted, shares | 147,213 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1870000.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 14.94 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1530000.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years 9 months 29 days | ||
Granted, shares | 147,213 | ||
Minimum [Member] | Performance Shares [Member] | |||
Performance Factors | 0 | ||
Minimum [Member] | Market Based Performance Shares | |||
Performance Factors | 0 | ||
Maximum [Member] | Performance Shares [Member] | |||
Performance Factors | 2 | ||
Maximum [Member] | Market Based Performance Shares | |||
Performance Factors | 2 | ||
Share-based Payment Arrangement, Tranche One [Member] | Performance Shares [Member] | |||
Granted, shares | 58,040 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 11.26 | ||
Granted, shares | 58,040 | ||
Share-based Payment Arrangement, Tranche Two [Member] | Performance Shares [Member] | |||
Granted, shares | 102,203 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 11.26 | ||
Granted, shares | 102,203 | ||
Share-based Payment Arrangement, Tranche Three [Member] | Performance Shares [Member] | |||
Granted, shares | 44,451 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 11.26 | ||
Granted, shares | 44,451 |
Stock-based Compensation Plan_3
Stock-based Compensation Plans Grants Table (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 8.6 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | shares | 162,433 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 11.26 |
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 1.8 |
Employee Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | shares | 39,492 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 1.97 |
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 0.1 |
Phantom Share Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | shares | 188,973 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 11.26 |
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 2.1 |
Market Based Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | shares | 147,213 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 14.94 |
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 2.2 |
Share-based Payment Arrangement, Tranche One [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | shares | 58,040 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 11.26 |
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 0.7 |
Share-based Payment Arrangement, Tranche Two [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | shares | 102,203 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 11.26 |
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 1.2 |
Share-based Payment Arrangement, Tranche Three [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | shares | 44,451 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 11.26 |
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 0.5 |
Segment Information (Schedule O
Segment Information (Schedule Of Selected Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 212.6 | $ 192.8 | |
Operating income | 20.3 | 15.9 | |
Depreciation and amortization | 14 | 12.1 | |
Restructuring | 2.4 | 3.2 | |
Payments to Acquire Productive Assets | 15.2 | 15.9 | |
Total assets | 1,309 | $ 1,337.3 | |
Intangible intangible assets, net | 428 | $ 433.7 | |
Mueller Co. [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 192.8 | 172 | |
Operating income | 35.7 | 30.9 | |
Depreciation and amortization | 12 | 10.1 | |
Restructuring | 0 | 0 | |
Payments to Acquire Productive Assets | 14.5 | 14.8 | |
Mueller Co. [Member] | Central Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 46.5 | 40.3 | |
Mueller Co. [Member] | Northeast Region [Member] [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 41.9 | 37.9 | |
Mueller Co. [Member] | Southeast Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 39.6 | 34.7 | |
Mueller Co. [Member] | Western Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 46 | 44.8 | |
Mueller Co. [Member] | CANADA | |||
Segment Reporting Information [Line Items] | |||
Revenues | 11.6 | 9.9 | |
Mueller Co. [Member] | Other International Locations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7.2 | 4.4 | |
Mueller Co. [Member] | UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Revenues | 174 | 157.7 | |
Mueller Technologies [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 19.8 | 20.8 | |
Operating income | (2) | (3.7) | |
Depreciation and amortization | 2 | 2 | |
Restructuring | 0 | 0 | |
Payments to Acquire Productive Assets | 0.6 | 1.1 | |
Mueller Technologies [Member] | Central Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4.7 | 6.5 | |
Mueller Technologies [Member] | Northeast Region [Member] [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 6.1 | 3.4 | |
Mueller Technologies [Member] | Southeast Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5.8 | 6.8 | |
Mueller Technologies [Member] | Western Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2 | 2.7 | |
Mueller Technologies [Member] | CANADA | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0.6 | 0.2 | |
Mueller Technologies [Member] | Other International Locations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0.6 | 1.2 | |
Mueller Technologies [Member] | UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Revenues | 18.6 | 19.4 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income | (13.4) | (11.3) | |
Depreciation and amortization | 0 | 0 | |
Restructuring | 2.4 | 3.2 | |
Payments to Acquire Productive Assets | $ 0.1 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019CAD ($) | |
Loss Contingency, Damages Sought, Value | $ 450 | $ 10 | ||
Income Tax Examination, Penalties Accrued | 22.2 | |||
IRS-Walter Energy Claim 1 [Member] | ||||
Loss Contingency, Damages Sought, Value | 554.3 | |||
IRS-Walter Energy Claim 2 [Member] | ||||
Loss Contingency, Damages Sought, Value | $ 860.4 | |||
Product Concentration Risk [Member] | ||||
Operating Leases | ||||
Product Warranty Expense | $ 14.1 | $ 9.8 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Feb. 20, 2020 | Feb. 10, 2020 | Jan. 30, 2020 | Jan. 29, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | ||||||
Dividends declared per share, in dollars per share | $ 0.0525 | $ 0.0500 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends Payable, Date Declared | Jan. 30, 2020 | |||||
Dividends declared per share, in dollars per share | $ 0.0525 | |||||
Dividends Payable, Date to be Paid | Feb. 20, 2020 | |||||
Dividends Payable, Date of Record | Feb. 10, 2020 |